Daily Brief Japan: Sony Financial Group, Soft99 Corp, I Net Corp, Daiseki Eco. Solution, Astellas Pharma, TSE Tokyo Price Index TOPIX, Hennge KK, Veritas In Silico, Axis and more

• Sony Financial Group (8729 JP) listed on Monday with a “Reference Price of ¥150. It opened at ¥205, quickly running to ¥210, then fell to ¥198 by lunch. Close? ¥173.8.
• That got a big ToSTNeT-3 buyback at ¥173.8. It traded lower on Day 2, closing at ¥164. Then lower still on Weds with another TN-3 buyback now ¥159.4. 
• Neither buyback was full. SFGI has bought back 124mm shares. But the stock has fallen hard. ADRs/ADSs start trading Tuesday. That could see more selling. 

• Soft99 Corp (4464 JP) announced that the close of the MBO offer period has been extended from 2 to 17 October. There are two key takeaways from the announcement.
• First, KeePer has not yet tendered its shares, despite providing an irrevocable. Second, the non-KeePer acceptances have increased from 6,108,200 shares on September 18 to 6,598,149 shares on October 2.
• The chances that KeePer accepts the Effissimo offer have increased. However, the current non-KeePer acceptances of the MBO make it highly challenging for Effissimo to succeed. Take profits.

• I Net Corp (9600 JP) has recommended a tender offer from Orix Corp (8591 JP) at JPY2,530, a 53.4% premium to the last close.
• The offer is attractive as it is above the midpoint of the target IFA DCF valuation range and represents an all-time high. 
• Despite the high required minority tendering rate, an attractive offer facilitates completion. The tender runs from 3 October to 17 November.  

• On 25 September, with the stock trading just below Effissimo’s terms, the Soft99 Corp (4464 JP) Board came out AGAINST the Effissimo proposal 66% higher than the MBO terms.
• The fine print said that the Soft99 deal had enough shares to get over the line assuming Keeper Labs tendered according to agreement due to Board Support. Shares plummeted. 
• Effissimo issued a stunning rebuttal which showed Board incompetence/negligence, possible breach of fiduciary duty. Today, MBO Bidco extended, the stock popped, but details are key.

• Daiseki Eco. Solution (1712 JP) has recommended a tender offer from Daiseki Co Ltd (9793 JP) at JPY1,850, a 54.3% premium to the last close.
• The offer is attractive as it is above the midpoint of the target IFA DCF valuation range and represents a three-year high. 
• The low required minority tendering rate facilitates completion. The tender runs from 3 October to 17 November.  

• Astellas Pharma (4503 JP) received a conditional approval of IZERVAY (avacincaptad pegol intravitreal solution) in Japan for the suppression of geographic atrophy (GA) growth in atrophic age-related macular degeneration (AMD).
• In Q1FY26, with 25% YoY revenue growth, Izervay reported record high quarterly sales of ¥16B. The drug continues to be preferred treatment for new patient start (market share of ~55%).
• For FY26, Astellas projects revenue of ¥470B from strategic brands, of which Izervay is expected to around ~¥105B. This will gradually accelerate in coming fiscals with Japan sales falling in.

• More companies have appointed outside directors as board chairpersons, driven by investor demands. For corporate governance to improve, it’s essential that investors continue speaking out, demanding management that creates value.
• Corporate Governance Code called for appointing outside directors to strengthen supervisory function of BODs, driven by concerns that a board composed solely of internal executive directors couldn’t effectively address challenges.
• If corporate governance has become a mere formality, it is the company itself that has driven this trend, so the company has no choice but to change its previous course.

• Hennge KK is a leading Japanese cloud security provider, specializing in Identity as a Service (IDaaS) through its flagship product, HENNGE One. The company benefits from the ongoing digital transformation and cloud adoption trends in Japan.
• The company exhibits a strong growth profile, with a 3-year revenue CAGR of 19.96% and a net income CAGR of 54.62%. This is driven by the expansion of its recurring revenue base from the HENNGE One SaaS platform.
• Key challenges include rising SG&A expenses due to investments in personnel and advertising, increasing competition from global players, and a noted decline in the average number of users per corporate client, which could pressure future growth.

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Key points (machine generated)

• Veritas In Silico is a Tokyo Stock Exchange-listed company focused on mRNA-targeted pharmaceuticals.
• The company employs a hybrid business model combining platform-type and pipeline-type approaches for drug discovery.
• Veritas is researching both small molecule and nucleic acid drugs using its proprietary ibVIS® platform.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only.

Key points (machine generated)

• Axis (Ticker: 4012) is an independent IT company listed on the Tokyo Stock Exchange, specializing in digital transformation solutions.
• The company operates two main segments: System Service Business and IT Service Business, with a proprietary cloud-based management system called ‘KITARO.’
• Axis has shown consistent profitability for 34 consecutive periods and aims to become a leading IT consulting firm by contributing to society through digital means.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only.